RE:RE:The Restructuring PlanSporty, You are apparently referring to the 3rd Qtr MD&A, were they refer to the Restructuring as "Subsequent to the quarter", which I assume refers to all the known restructuring they did earlier in the year Then in the 4th Qtr., MD & A which I pasted from, they stated "During the fourth quarter 2023, the board of directors of the Company approved a restructuring plan". Thus my confusion, is there more restructuring in the works?
They restructured the company and the debt in March and April of last year, and spun out Frontera Guyana, and Frontera Infrastructure (meaning the Port and the Pipeline) from being tied to the 2028 bonds. Likely to allow these subsidiaries to be more easily sold off individually. We probably have de Alba to thank for that. I doubt it would have been done otherwise and hopefullly brings in more $ to shareholders than trying to sell FEC intact.
The unsecured 2028 bonds now only have first dibs on Frontera Colombia upon default, like occurred when Catalyst took over PRE when they defaulted. And how Catalyst now controls 41% of FEC and 77% of CGX. Frontera Guyana and Frontera Infrastructure are no longer collateral for the bonds.
They restructured the Pipeline loan in March of 2023 for $120mm and with it paid off the remaining Port loan of about $106mm. So, nothing is owed on the port but the recent $30mm loan for the pipeline to the refinery and $95.6mm was remaining on that 5 yr. Pipeline loan (PIL) at years end and Frontera Infrastructure is no longer collateral for the 2028 bonds.
" The 2028 Unsecured Notes are senior, unsecured notes and rank equal in right of payment with all existing and future senior unsecured debt. As at March 31, 2022, the 2028 Unsecured Notes were guaranteed by the Company’s subsidiaries, Frontera Energy Colombia Corp. (“Frontera Colombia”) and Frontera Guyana. On April 11, 2023, the Company designated Frontera Energy Guyana Holding Ltd. (“Frontera Holding”) and Frontera Guyana as unrestricted subsidiaries and released Frontera Guyana as a note guarantor under the indenture governing the 2028 Unsecured Notes (the “Indenture”). Frontera Colombia remains the sole guarantor of the 2028 Unsecured Notes."
"The following reconciles both measures to amounts reported under IFRS:
As at December 31 ($M) 2023 Short-term and Long-term debt is $ 421,982
Excludes $95.6 million of long-term debt attributable to the Unrestricted Subsidiaries." The Port and the Pipeline or Frontera Infrastructure..